How did one of Oregon's most beloved politicians go from a historic 4th term to criminal investigation?

Statesman Journal

The Oregon Ethics Commission accepted on Friday a settlement reached with former Gov. John Kitzhaber, closing this chapter of a years-long scandal that forced the governor to resign.

Kitzhaber will pay a civil penalty of $20,000. The maximum fine that could have been levied was $50,000 — $5,000 per offense.

Former Gov. John Kitzhaber listens to the Oregon Government Ethics Commission as they decide ...more

Former Gov. John Kitzhaber listens to the Oregon Government Ethics Commission as they decide whether to accept his $20,000 settlement for violations of state ethics laws on Friday, March 30, 2018. Kitzhaber's lawyer, Janet Hoffman, sits to his right.

MOLLY J. SMITH / Statesman Journal

"I did violate several provisions of Oregon's ethics laws," Kitzhaber said. "As governor it was my responsibility ... to ensure these questions of ambiguity were referred to the commission."

Kitzhaber said he found the fine to be appropriate and reasonable, and expressed regret for the turmoil this situation has caused.

He admitted to 10 violations of three ethics provisions: a conflict-of-interest law (seven times), a law prohibiting the use of public office for private gain (two times), and a law limiting gifts to public officials to $50 (one time).

The commission found that Kitzhaber had no intent to violate ethics laws. Kitzhaber said multiple times during Friday's meeting he should have brought these issues to the commission as they arose.

“I erred, and I assume full responsibility for it,” Kitzhaber said.

After previously rejecting a settlement of $1,000 last year, commissioners were again faced with the question of whether the fine and settlement wording were appropriate for the offenses and the stature of the office.

Commissioner David Fiskum said the settlement puts an end to this "sad chapter" of Oregon's history. But he said he came into the meeting unsure of how he would vote.

In contemplating the agreement, Fiskum said, he kept returning to the concepts of "justice" — exacting as severe a fine as possible — with "mercy" — allowing the matter to come to a close.

At the heart of Friday's discussion was the nature of the commission as well — educational versus punitive.

While the commission can levy fines, its stated mission is to "emphasize education" in its enforcement of the state's ethics laws.

Kitzhaber contended the commission's educational purpose had been well-served by the media attention his case received, making it clear what might happen to other public officials if ethics laws are broken.

Commissioner Richard Burke called Friday a "bright day" for Oregon, not sad as some might portray it. Burke said the settlement allows the Ethics Commission to give Oregonians another reason to believe in their government.

“We will show the people of Oregon and public officials that ethics laws do mean something,” Burke said.

The settlement was approved unanimously with one abstention.

The commission launched a preliminary review in fall 2014 after then-state Rep. Vicki Berger, R-Salem, and the Oregon Republican Party filed complaints alleging Kitzhaber and Hayes used their positions for financial gain.

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The violations stem from conflicts of interest involving an overlap between Kitzhaber’s role as governor and his interest in a business owned by First Lady Cylvia Hayes. Hayes had a dual role as an unpaid adviser in the governor's office and was privately paid to consult on the same issues.

The Ethics Commission staff and Kitzhaber had first agreed to settle for $1,000 in November, but the commissioners rejected the settlement. At the time, they said they wanted to see a more detailed investigation. They also had concerns about the size of the fine.

After the commissioners' decision, the Ethics Commission staff continued the investigation.

A 131-page investigation into Kitzhaber was released Feb. 14.

At their Feb. 16 meeting reviewing the investigation, the commission decided to remove one violation of misuse of office — for allowing a staff member to care for Hayes’ pets — after Kitzhaber explained the staff member also was an old friend who volunteered to provide the care.

In January, the Ethics Commission found that Hayes committed 22 ethics violations during her time as First Lady. In addition to the maximum per violation fine of $5,000, the commission could require Hayes to forfeit up to twice the amount she earned from contracts received because of her access to top government officials.

At the time, commissioners said they would be unwilling to accept a settlement for much less than the maximum amount.

The case is still undecided. The two parties can come to a negotiated settlement — as Kitzhaber has — or a contested case hearing, where a judge reviews the case and arrives at a final order. The case could later be appealed to the Oregon Court of Appeals.

Reporter Tracy Loew contributed to this report.

Contact the reporter at cradnovich@statesmanjournal.com or 503-399-6864, or follow him on Twitter at @CDRadnovich